Elon Musk is the richest man in the world, and he does whatever he wants. Just a few months after announcing the acquisition of Twitter, Musk backed out of his deal. Executives at the social media giant did not like this, and now they want to drag Musk to the court.
In late April, Musk made an offer to buy Twitter for $54.20 a share, which was 30% more than what the company stock was trading at the time. The deal was accepted by the social media giant. However, in the following month, Musk put his acquisition on hold to investigate the inner-workings of the company.
Eventually, a few days ago, Musk made a filing to back out of the deal because Twitter was in “material breach.” This move has caused quite a stir, and investors are not happy about it either.
Deadline reports that Twitter has initiated a lawsuit against Musk for not upholding his end of the contract. The suit was filed in Delaware Chancery Court today. The company has decided to not let TESLA CEO get away that easily.
Musk refuses to honor his obligations to Twitter and its stockholders because the deal he signed no longer serves his personal interests. Musk apparently believes that he — unlike every other party subject to Delaware contract law — is free to change his mind, trash the company, disrupt its operations, destroy stockholder value, and walk away.
This repudiation follows a long list of material contractual breaches by Musk that have cast a pall over Twitter and its business. Twitter brings this action to enjoin Musk from further breaches, to compel Musk to fulfill his legal obligations, and to compel consummation of the merger upon satisfaction of the few outstanding conditions
Elon Musk still owns 9.6% of Twitter, which makes him the biggest stakeholder in the company. The billionaire had big plans in mind regarding the future of the social media website, but it seems that won’t be happening now.
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